Compulsory pensions not affordable - Mercer

According to consultancy firm Mercer HR, the rising flow in the price of UK housing has made it difficult for first-time buyers to meet any kind of savings requirement. Mercer says the mortgage cost for a first-time buyer on an average income increased from 32% of net pay in 2002 to 41% in 2004 with the relative comparative cost of housing against salaries has eating any prospective contributions. Mercer adds if interest rates were to increase by 1%, as predicted, then 45% of average take-home pay would be needed to pay a mortgage. Dr Deborah Cooper says: "Turner has put forward a n...